Attorney Michael de Broglio on: South Africa, Law, Politics, Attorneys, Sport, Photography, Technology, Gadgets, Media, Crime, Road Accidents Fund,
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I heard an interesting show on 702 recently about the lack of a culture of saving in South Africa. We lag behind many other countries, and it is not because people don’t earn enough. In many countries, where the people earn a lot less than us, they still have higher percentage savings rates. The problem is that we have a society of trying to impress people, instant gratification and having it all now. We judge people by the car that they drive, not whether it is paid off or heavily financed. We naturally assume the person driving the fancier car earns more money, is doing better in life and is more successful whereas in many cases that person may well be living a life financed by banks and debt and all their flashiness is supported by accounts and credit.
The problem, if you adopt an attitude of, “Well, I will earn much more later”, is that if you don’t learn a culture of saving at least 10% of your salary each month for your pension, as well as another 10% for other short-term goals – such as a deposit for a house, you will forever remain dependent on others and never learn to save, so it will not matter how much you earn, you will always have an excuse as to why you cannot save now and while you think other people will have excuses, you will deep down believe that yours are really genuine and different to everyone else’s. A government pension of just over R1 000,00 a month is terribly hard to survive on but if you cannot make savings when you are earning more than that, and nearly all people are, then that is what you ultimately will have to get used to living on.
Posted by Michael de Broglio on Tuesday 29-May-12
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Comments
Daniela said:
on Friday 01-Jun-12 03:12 PM
I have also recently only started looking into saving and it does make the monthly budget that much more inflexible, but it helps one's maturing as well.
I have come to realise that no matter how many excuses a person can up with for not saving, none of them are true. There are always means to save.
thembi said:
on Friday 01-Jun-12 01:45 PM
What l can say is that saving is really a good idea for all of us as no-one knows what the future holdsfor us.
The money that we have saved will help through the difficult times.
Yolandi said:
on Thursday 31-May-12 01:41 PM
I will definitely start saving for my own future.
Robyn said:
on Thursday 31-May-12 01:26 PM
I will definitely be one of those who will start saving if I can get something extra out of it. I've told myself a million times I need to start saving but I find it very hard. I'm impulsive so..well, enough said.
Lucretia said:
on Wednesday 30-May-12 01:50 PM
In my opinion, SARS should offer a rebate to people who can prove they save on a yearly basis. Enclose a savings account in ones tax return and if you can prove that you have continued to save, you get a rebate, if you have spent, you are taxed on the money you have spent from that savings account. This is one way of teaching people to start saving - incentives work wonders
Julie said:
on Tuesday 29-May-12 03:47 PM
I am a very uhm irresponsible person - I don't save, I don't have a medical aid, I own absolutely nothing, I don't have a driver's licence, I haven't invested in a husband, I don't have insurance (what will I insure?).... Guess I'd better start growing up....
Angelique said:
on Tuesday 29-May-12 02:21 PM
It use to be really hard for me to save but I too saw a financial advisor and money is put into a 30 day account every month so that it forces me to save. I must say, I also dont notice it because I wouldve spent it on shoes or clothes or going out in any case.
Dune said:
on Tuesday 29-May-12 01:53 PM
It was really hard for me at first to realize that I have to start saving especially after tax, but then I spoke to a financial adviser, and he explained the exact same to me, if you want to retire at the age of 55-65 then you need to start saving 15% of your salary every month, and for me 15% was a lot, especially if you are a student. But now it goes off by debit and i don't even realize it, its definitely a good idea to save up for the future, even if it hurts your pocket now, you wont regret it in the future.
Simone said:
on Tuesday 29-May-12 11:09 AM
Definitely some of the best advice for all South Africans.
Lizanne said:
on Tuesday 29-May-12 11:00 AM
I agree with Alexis. People have to save money for the future, for your children and teach your children from a very young age why it is important to save money and to help them save money for their own future.
Alexis said:
on Tuesday 29-May-12 10:50 AM
I try and save as much as I can however it is quite difficult. ou need to look to the future if want to have a good life in the end. One thing I am very keen on, will be earning interest on something or playing in shares, however I do not know much about it. Think smart now in order to have a better future for yourself and you kids. It is a hard life as it is and yoiu need to make plans as soon as possible. If you do have children, best to start putting away even R100 a month and I can gaurentee, especially in a Unit Trust account uyou will have saved a lot to sort you child out for the rest of you life.
Johannesburg based attorney specializing in personal injury matters including Road Accident Fund claims and medical negligence matters. My interests include golf, reading and the internet and the way it is constantly developing. I have a passion for life and a desire for less stress!
